Top ten tips of get rich slowly
We all want to get rich fast – but the secret to lasting wealth is wealth that will last a lifetime and can be realistically built over a period of time and not overnight
- Prepare a personal financial plan – you need to know where you are going, where you want to go, and where you are at the moment. You need to first prepare a list of all your assets and liabilities. Then prepare your own income statement and try and cut out all the avoidable expenses. Then create a five year and ten year plan and stick to it – its not going to be easy but taking control of the future takes a lot of discipline.
- Pay yourself first – give priority to savings first, if you don’t save you can’t invest and if you don’t invest you WILL be poor forever. –Invest don’t save – saving money in a checking account or other bank instrument is the way bank’s cheat you of your future wealth – you need to head over to the stock market or mutual funds and invest you money in a growing company with good future potential. You might also not have the expertise to invest properly but you can get that experience and knowledge by getting involved in investment forums and contacting stock brooking agents, wealth planners etc
- Focus on income – most people spend a lot of their time trying to cut down small expenses when difficult times hit them and try to “save the patient by cutting off the head” Rather you should focus on boosting your income by upgrading your skill set and probably working smarter than harder.
- Focus on big expenses – routine expenses and big purchases are the type of expenses that you should worry about keeping these under control could get you in the black and keep you there.
- Used rather than new – many millionaire share the secret that they started out by being cheap and going only for used items – this habit can save you a bundle – anywhere from 40% to 80% the saving can add up
- Rent rather than own – ownership has its privileges and costs – owning a liability is to be avoided at all costs – renting under most circumstances makes sense especially in these difficult financial times.
- Plan you shopping and invest in your purchases– I have been a victim of binge shopping or compulsive shopping for too long and have planned out a system where I enter a store only with a list of stuff to by and stick to it no matter what. This is an excellent method to avoid implies buys. It also helps to keep you within your monthly budget. Investing in your purchases refers to looking at the long run when purchasing a big ticket item such as a car or a house can you expect it to appreciate or at least hold its value?
- Protect your assets by starting a corporation and transferring some of your assets to that corporation – is definitely important if you intend to start a business – to separate personal assets from business assets in the event of litigation your personal assets will be protected.
- Build a Business to sell – building a business or buying a loss making business turning it around and selling it – called “business flipping” is one of the most favoured methods of making a lot of money within a short period – always start a business with the intention of selling it some time in the future. Maintain a growing bottom line and top line as this will yield the highest sale price from a buyer.
- Avoid taxes by using proper tax planning – you could save an enormous amount that would otherwise belong to uncle Sam. Also note that Uncle Sam could owe you a lot of money in case you are entitled for any tax breaks so don’t forget to file your refund claims.